UJRAH-BASED ISLAMIC CREDIT CARD: A SHARIAH-COMPLIANCY ANALYSIS
DOI:
https://doi.org/10.53840/ijiefer69Keywords:
Ujrah, Bay-al-Inah, Ibra, Islamic Credit Card, ShariahAbstract
The issue of Islamic credit card has received considerable academic attention. Therefore, this study investigates Islamic credit cards' practice based on the concept of Ujrah in the Islamic Banks in Malaysia and analyses contemporary Shariah scholars' views on that. The study adopts a qualitative method to achieve its objectives. The data were collected using semi-structured interviews as primary data. For the interviews, a sample of eight participants was selected. Six were Shariah scholars, and the other two were practitioners from Islamic banks in Malaysia. The findings revealed that Ujrah is permissible among classical and modern jurists, and Ujrah is accepted as the recommended contract used in structuring Islamic credit cards. It is also allowed to pay the fee in Shariah. Most Islamic financial institutions accept Islamic credit card based on Ujrah theory, such as Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Bank Negara Malaysia (BNM). The findings revealed that Ibra (rebate) as practised in the Ujrah-based credit card is permitted in the Shariah, which is used for doing justice to the customers. Islamic financial institutions implement the concept of Ibra in Islamic credit card not for hilah (legal strategy) but actually for the benefit of the people. The paper will directly impact the current operation of the Islamic credit card in Malaysia. The Ujrah concept at the Islamic banks will help them charge the service fee to the customers.
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